Question

ABC Ltd. Purchased on 1 January, 2014 second hand plant for Rs 30.000 and immediately spent Rs 20,000 in overhauling. On 1" July, 2014 additional machinery of a cost of Rs 25,000 was purchased. On 1" July, 2016, the plant purchased on 1" January, 2014 became obsolete and was sold for Rs 10,000. On same date new machinery was purchased at a cost of Rs 60.000. Depreciation was provided for annually on 31 December, at 10% per annum on the original cost of the asset.in 2017, however, the company changed this method of providing for depreciation and adopted the method of writing off 15% on the diminishing value.

Show the plant and Machinery Account as it would appear in the books of the company for the year 2014 to 2019 and show your working note clearly.​

Answer 1

Explanation:

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